Case Law Details
ACIT Vs Starwood (M) International Inc. (ITAT Delhi)
Conclusion: In present facts of the case, while dismissing Revenue’s appeal, it was held that to prove case under Article 12 of India-US DTAA, no specification was given or limb was satisfied by the Revenue. Further, it was also held that no new facts could be entertained at the Tribunal stage.
It is pertinent to note that the Assessing Officer has simplicitor made addition in respect of FTS under Article 12 but no limb of Article 12 was given by the Assessing Officer and there is no specification which comes out from the assessment order as contemplated by the Ld. DR during the hearing.
The Revenue is projecting a new case which was not part of assessment order as well as order of the CIT(A). Therefore, the written submissions made by the Ld. AR are just afterthought and cannot be taken into account as the same are not plausible.
Held: In present facts of the case, the CIT(A) has erred in holding that the receipts of the assessee from various activities of hotel management were not taxable as “Fee for Technical Services” (FTS) within the meaning and scope of section 9 of the Income Tax Act, 1961 as well as Article 12 of the India-US Double Taxation Avoidance Agreement (DTAA).
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